The AAR Gujarat considered the submissions and manufacturing processes for ‘Mix Mukhwas’ and ‘Roasted Til & Ajwain‘. It noted that the primary ingredient, sesame seeds, constitutes 60% of ‘Mix Mukhwas’ and 97% of ‘Roasted Til & Ajwain’.
Cleaning, roasting, and seasoning processes were found to maintain the seeds’ fundamental nature, with added ingredients and roasting enhancing flavor and preservation. HSN notes and case laws support the classification under Chapter 12 for oil seeds and oleaginous fruits.

Based on above it gave the following ruling: 

• Both products were classified under Tariff Item 12074090 of the Customs Tariff Act, 1975, due to the dominance of sesame seeds.
• The products fall under entry no. 70 of Schedule I of notification No. 1/2017-CT(R) dated 28.06.2017, subjecting them to a tax rate of 2.5% CGST and 2.5% SGST (or 5% IGST).
At the same time, The applicant has an agreement with MB INDIA to receive compensation for demo car losses due to deterioration, categorized as a service of tolerating the loss.

Based on its observations, the Authority ruled:
1. The applicant can claim input tax credit on demo cars used for demonstration and later supplied further after specified time period.

2. The vehicle is classified under Chapter 8702 or 8703, with the outward supply tax rate matching the inward supply rate, per section 14 of the GST Act.
3. Reimbursement from Mercedes Benz India for demo car sales loss is considered taxable service income at 18%, classified as ‘agreeing to tolerate an act’ (SAC: 9997974).